Gem Diamonds Ltd. (GEMD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Eurasia Mining Plc

Ferro-Alloy Resources Ltd.

Gem Diamonds Ltd.

Pensana Plc

Savannah Resources Plc

Kodal Minerals Plc

Asiamet Resources Ltd.

Horizonte Minerals Plc

Kropz Plc

CleanTech Lithium Plc

Technology Minerals Plc

Why is Gem Diamonds Ltd. ?

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at GBP 44.36 MM
NET SALES(Q) At GBP 39.61 MM has Fallen at -32.87%
PRE-TAX PROFIT(Q) At GBP -3.96 MM has Fallen at -370.5%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -41.88%, its profits have fallen by -50.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -41.88% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Gem Diamonds Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gem Diamonds Ltd.

-100.0%

-0.88

108.60%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.71%

EBIT Growth (5y)

-175.68%

EBIT to Interest (avg)

6.77

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.97

Tax Ratio

29.71%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

22.35%

ROE (avg)

11.64%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.07

EV to EBIT

-2.51

EV to EBITDA

1.02

EV to Capital Employed

0.23

EV to Sales

0.31

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.21%

ROE (Latest)

4.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

NET PROFIT(Q)

Highest at GBP 20.18 MM

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP 44.36 MM

NET SALES(Q)

At GBP 39.61 MM has Fallen at -32.87%

PRE-TAX PROFIT(Q)

At GBP -3.96 MM has Fallen at -370.5%

ROCE(HY)

Lowest at -40.8%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.42 times

RAW MATERIAL COST(Y)

Grown by 64.4% (YoY

CASH AND EQV(HY)

Lowest at GBP 2.81 MM

EPS(Q)

Lowest at GBP -0.49

Here's what is working for Gem Diamonds Ltd.

Net Profit

At GBP 20.18 MM has Grown at 2,081.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (GBP MM)

Net Profit

Highest at GBP 20.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Here's what is not working for Gem Diamonds Ltd.

Net Sales

At GBP 39.61 MM has Fallen at -32.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (GBP MM)

Pre-Tax Profit

At GBP -3.96 MM has Fallen at -370.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Operating Cash Flow

Lowest at GBP 44.36 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Inventory Turnover Ratio

Lowest at 2.42 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

EPS

Lowest at GBP -0.49

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Cash and Eqv

Lowest at GBP 2.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 64.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales